European stocks clock largest weekly percentage gains since March



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European stocks clock largest weekly percentage gains since March

On Friday, a basket of European bourses had wrapped up the session lower amid angsts over an increase in omicron cases, while a 39-year peak US CPI (Consumer Price Index) reading that came in well in line with an analysts’ estimate added to further uncertainty regarding US monetary policy.

In point of fact, in the week’s sharp upward spirals in major European bourses were almost entirely galvanized by optimisms that the newly identified Omicron variant might have little or no impacts on global economy and demands of goods and services, however, regional pan-European STOXX 600 had stretched out its latest leg of losing streak into a third straight session in a row, as market participants seemed to be utterly concerned over affects of newly imposed pandemic restrictions across the bloc.

Nonetheless, a strong opening of the week following encouraging remarks on omicron helped STOXX 600 notch its largest weekly gain since March, winding up the week 2.8 per cent higher. Aside from that, release of a media headline that the ECB (European Central Bank) was looking to ramp up its bond repurchase program, fared well for major European stock indices.

Meanwhile, addressing to uncertainties over monetary policy on both sides of the Atlantic, a chief market analyst at IG, Chris Beauchamp said, “It looks to be a subdued end to the week... as stocks pause for breath following the big gains in the first half of the week.

U.S. CPI came in line with expectations, but prices continue to rise, meaning that while the pressure on the Fed to raise rates hasn't increased much as a result of today's data, it doesn't really lessen it either.

European shares end lower, but post highest weekly gain

Citing statistics, in the day’s European market wind-down, London’s blue-chip FTSE 100 shed 0.40 per cent to 7,291.78 and French CAC 40 closed 0.24 per cent lower to 6,991.68, while Frankfurt’s DAX edged 0.10 per cent lower to 15,623.31.

Elsewhere in the Europe, Italy’s FTSE MIB lost 0.36 per cent to 26,721.98, while Madrid’s benchmark IBEX 35 curbed out 0.47 per cent to 8,360.20. On the week, UK’s FTSE 100 gained 2.38 per cent, French CAC 40 climbed 3.34 per cent and Frankfurt’s DAX jumped 2.99 per cent, while Italy’s FTSE MIB soared 3.02 per cent and Madrid’s IBEX 35 added 1.44 per cent.